And many traders are betting that the stock price will continue to fall further.

And many traders are betting that the stock price will continue to fall further.

Shares of Trump Media have erased all their gains since they began trading under the ticker DJT last month.

The stock closed down more than 8% Monday at $37.17 after falling about 11% earlier in the day. It had traded above $79 a share on March 26, the day of its debut.

But experts say it’s hard to draw any firm conclusions about what the stock price’s movement means. That’s because so many available shares — about 12%, one of the highest ratios of any active stock listing — reflect traders’ bets that the stock will fall, said Ihor Dusaniwsky, managing director at S3 Partners, a data and predictive analytics company.

This is called short-selling.

      • Beemo Dinosaurierfuß@feddit.de
        27·
        7 months ago

        Maybe I am misunderstanding you, but I also would never think of actually investing in anything Trump.

        Shortselling is betting that the stock value falls without actually holding the stock.

        • Flying Squid@lemmy.world
          201·
          7 months ago

          I admit I forgot what it meant when I posted that, but I don’t even think I would want my money involved in that sense. I just wouldn’t want my money involved.

          Also, I don’t quite remember what happens if shorting fails, but it benefits the stock, doesn’t it? I’d hate to be wrong and then help out Truth Social on top of it.

          • Beemo Dinosaurierfuß@feddit.de
            4·
            7 months ago

            Also, I don’t quite remember what happens if shorting fails, but it benefits the stock, doesn’t it?

            First things first, I don’t really know how to actually shortsell stuff. My portfolio is super basic and my original comment was only half serious.

            But I think you have the causality the wrong way around.

            It’s less that the stock profits if my short fails.
            It’s more that my short fails (in that I lose money) if the price of the stock goes up.

            A single small shortsale can’t really affect the stock price in a meaningful way, but if it could it would generally lower the stocks price since it is a signal that the market (which the shortseller is a part of) has no trust in the stock.

            That said I am by no means a trading expert myself and could possibly miss some effects on the market.
            I only invest long term in broadly spread ETFs (think MSCI World and similar).

  • TigrisMorte@kbin.social
    29·
    7 months ago

    It has negative income and no rational course to change that. Sadly the short sellers are profiting off the money laundering that was the entire intent.

    • formergijoe@lemmy.world
      4·
      7 months ago

      Of course there’s a natural course to change that. Trump becoming president so people can bribe him through Truth Social ad purchases.

    • MrVilliam@lemmy.worldEnglish
      29·
      7 months ago

      If he did, then I’m pretty sure he broke the law. Again. I don’t think he was allowed to do that or use the shares to secure a loan.

      • Nusm@yall.theatl.socialEnglish
        11·
        7 months ago

        I don’t think he was allowed

        And when exactly has that ever stopped him? And what was the penalty when he did what he wasn’t allowed? Wellllllllll………

        • MrVilliam@lemmy.worldEnglish
          4·
          7 months ago

          Yep. Just pointing this out so we can dial up the pressure ahead of time. Continuous pressure has finally gotten Biden to start talking about a ceasefire in Gaza, so pressure does work, even if it takes an unacceptably long time.

      • venusaur@lemmy.world
        2·
        7 months ago

        Ah, I thought he was gonna use his shares to pay off his fines, but maybe he made money another way with the IPO?

        • MrVilliam@lemmy.worldEnglish
          16·
          7 months ago

          People were publicly pointing out that the money made from that IPO was theoretical and unrealized gains that couldn’t be sold off for 6 months per SEC rules specifically because it was assumed that he would probably try. If it’s found that that’s what happened, we need to pressure the SEC to make the punishment more than just the cost of doing business. I’m tired of seeing businesses and billionaires getting fined only a couple million for stealing a couple billion.

          • the_wise_wolf@feddit.de
            6·
            7 months ago

            I just looked it up. He has a 6 months lock-in period. CNN article

            Btw. this was not an IPO, but a reverse-merger using a SPAC. That way the company going public doesn’t have to adhere to the SEC’s strict IPO regulations.

          • pm_me_your_quackers@lemmy.ca
            3·
            7 months ago

            Any wrongdoing is just gonna be another slap on the wrist, again. Turns out in America, billionaires hoard second chances, too; even the fake ones.